Friday, May 26, 2017

First of all, congratulation to all OldTown investors who take action to readjust the shareholding of OldTown. As mentioned on earlier article, there is no people know better than the management. When management dispose shares, we should alert.

Previous good quarter earning, which was contributed by "Other gains and losses" and reduce of "Puchase of trading mechandise,...". When come to this quarter, the "extra earning" on previous quarter is being normalise. Hence, less earning is declared. As shown in below picture.

For 12 months accumulate EPS is 13.46, which is translated to PE 23. We all know that there is a high demand and good prospect on China market, but the growth of China market seems like being drag down by local business. Hence the overall growth is only able to achieve a moderate growth rate around 8% to 10%. So the question is shall we pay such a high PE ratio to a modetate growth company?

Picture: Growth of China market is excellent, but drag down by other area. Hence, overall growth of the company is so so.